S. Korea’s NPS targets 65% in riskier assets

South Korea’s National Pension Service (NPS) will allocate 65 per cent of its assets to riskier investments under new long-term guidelines, in a move designed to boost returns and ensure long-term sustainability, Reuters reported on Thursday.

The Ministry of Health and Welfare (MOHW) stated that the fund will swiftly invest in various alternative assets to maximise returns, as Reuters added.

Previously, the NPS held 46.7 per cent of its assets in stocks and 16 per cent in alternative investments, with the remaining portion in safer categories.

The plan now is to increase exposure to both international and non-traditional assets in pursuit of higher returns.

The NPS boasted total assets of 1,069.7 trillion won ($777.68 billion) at the end of February. This new investment strategy signifies a proactive approach to securing the long-term health of South Korea’s public pension system.